Difference between revisions of "Deadweight loss"
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Revision as of 06:19, November 25, 2007
Deadweight Loss is an economic loss to the public without any offsetting gain.
Specifically, a deadweight loss is the loss in efficiency that a society suffers as a result of firms setting their monopoly prices greater than marginal cost, P > MC. The deadweight loss is due to the loss in value to society of output not produced.